Unstable fuel prices and toll hikes are “a grim reality” for drivers in Malaysia today. With the recent petrol hike of RM0.10 per litre, and toll hikes that range from 30% to 100%, an unfortunate side-effect is that it’s getting ever more expensive for consumers to buy and own a new vehicle.
On top of these recent increases, the 6% Goods and Services Tax (GST) also hit the car industry significantly, with things like car insurance and road tax being charged the GST rate starting in April this year.
With the likelihood of Xzibit coming by to pimp your ride being lower than a toll decrease, you’re probably forced to stick to your beat-up ride instead of getting a new replacement.
However, it is not impossible to still get a new ride. If you scout out a good deal. Especially one that gives you great value for your money, and helps you manage other rising transportation costs.
The skyrocketing cost of ownership
Experts have said it numerous times, before you make any vehicle purchase, it is important to determine ownership and operational costs and compare them to your current and future financial situation.
Some of the expenses that are responsible in driving (pun intended!) up your transportation costs are:
For example, if you are planning to get a mid-range car that costs about RM90,000, here’s the estimated cost of ownership for the first year:
Sounds like a lot of money to spend on a brand new car for the first year? It may sound alarming because you’ve never really sat down and calculate the cost of ownership for your car. The costs of getting a new car are more than just the price of it. Knowing all these costs will help you decide on your next car wisely.
If you have two cars in mind that costs about the same to buy, having discounts and savings on one that help your overall cost of ownership will definitely lighten your financial burden.
Cut the cost by more than a quarter
As the experts say, look into the details and do your homework, and shoppers may just pocket a sizeable wad of cash and choosing a vehicle that delivers the most bang for their bucks!
It doesn’t seem to have an end to the current fuel situation, toll prices may see another hike soon, and cost of financing does not look like it’s abating, nor are repair and maintenance costs.
Any significant savings will have to come from the manufacturers, and one manufacturer understands the plight of the consumers. With a pretty sweet limited-time-only deal coming from Volkswagen.
It’s pretty much like what they say. Get a free Volkswagen for the first year through a 12-month free instalment promotion. Here’s how much you can save!
Driving a spanking brand new car without paying a single sen to the bank sounds like a dream come true. And with this promotion, this dream can be realised. Without having to worry about the monthly instalment in the first year, which can come up to RM1,158 with 2.52% interest rate per annum, you can better use this money to deal with the exorbitant toll prices, and the yo-yoing petrol prices, not to mention the pesky GST on all your other expenses! That comes up to RM13,896 in savings that you can use for your other expenses, or even high-yield investments.
This also means that you will only be paying your monthly instalment over six years, starting from Year 2 onwards!
Of course the total savings you can make from the 12-month free instalments campaign depends on the model.
Grab a new ride with free cash
It is a well-known fact – a car is a depreciating asset. However, you can buffer the loss by choosing to buy a car that gives you value before you even put the key to the ignition.
As part of the campaign, Volkswagen is also matching the car buyers’ 10% down payment with another 10% rebate. Buyers will have to fork out 10% down payment for the car, just like buying any other car, but the sweet deal is, Volkswagen will top that up with another 10%.
An additional 10% down payment can help you bring down you interest charges over your loan tenure. For example, if you are buying a Polo Sedan at RM91,888, here’s how much you can save:
|Loan amount = RM91,888 – RM9,189 = RM82,699
Interest rate = 2.52% p.a.
Tenure = 7 years
Monthly instalment = RM1,158
Total interest incurred = RM14,573
|Loan amount = RM91,888 – RM9,189 – RM9,000 = RM73,699
Interest rate = 2.52% p.a.
Tenure = 7 years
Monthly instalment = RM1,032
Total interest incurred = RM12,989
You save: RM1,584 in interest!
The rebate amounts depend on the car models.
You can opt to cash-out the 10% in the form of rebates, and use the cash for your other purchases. But we’d always advise you to reduce the principal amount of a car loan as much as possible.
Numbers don’t lie
With a lower cost to own, you can manage your depreciation better. Plus, who doesn’t want to drive a free car for a year?
Best of all, a cash rebate can be applied directly to your down payment, which can make purchasing a new-car that much easier and more affordable in the long run.
The savings offered by Volkswagen can come up to a whopping RM46,100. That’s the price of a small lower range car! Check out how much savings you can make with each Volkswagen model:
If you are on the verge of getting a new car but the rising cost of living is making it harder for you to decide, the one-year buffer will really help you manage it.